Chain data shows that recent sales from Germany involved more than 16,000 BTCs in a single day. Experts are discussing the potential long-term effects of the massive sales and their impact on overall market confidence. Notably, bitcoin prices have fallen nearly 13% since the German government sales began.
According to on-chain data from blockchain analytics platform Arkham Intelligence, the German government continued its massive bitcoin (BTC) sales on July 8.
The government just sent 2,738.7 BTC, equivalent to $155.3 million, to marketplaces and exchanges such as Kraken, Cumberland and the ‘bc1qu’ address.
Market Reactions to Bitcoin Sales
Specifically, the German government sent 1,533 BTC, or $87.6 million, in the last few hours. Prior to this, the German government had no prior interaction with the Cumberland or bc1qu addresses.
A few hours after the first transaction, the German government sent an additional 8,100 BTC worth $463.2 million to exchanges and market makers, including $200 million to Flow Traders. Shortly after this second batch, another 5,200 BTC worth $297.3 million were sent to Kraken, Bitstamp, Coinbase and 139Po.
This resulted in the largest day of sales, with a total of nearly 16,000 BTC transferred. Less than half of what was originally seized from Movie2k, the government’s current bitcoin holdings stand at 23,787.7 BTC, valued at $1.35 billion.
Interestingly, Arkham’s data shows that the German authorities received nearly 3,000 BTC back later that day, mainly from Coinbase, Kraken and Bitstamp. The German government’s recent BTC sales have sparked discussion among industry experts.
Ki Young Ju, founder and CEO of CryptoQuant, shared his thoughts on the situation. He commented that the bitcoin market is still heavily influenced by “psyops”.
“Govt BTC selling is negligible compared to overall liquidity, and most Mt. Gox BTC holdings haven’t moved to creditors. CT still blames the drop on govt selling. Smart money is replacing dumb money. We’re still early,” he posted on X.
Renowned cryptocurrency trader Alex Krüger provided a detailed analysis of the sell-off. He noted that this was the home stretch of the German sell-off and that they would eventually run out of coins. Furthermore, he suggested that the market could absorb the remainder in one fell swoop, just as it did with the Mt. Gox flows.
German Government Transfers Additional USD 900 Million in BTC
A cryptocurrency wallet labeled “German Government (BKA)” has sold another $900 million worth of bitcoin, raising fears that related selling pressure will push the price of BTC lower.
According to onchain data from Arkham Intelligence, the wallet associated with the German government transferred a total of approximately 16,309 bitcoins in multiple transactions to various external addresses on July 8.
This is the largest bitcoin settlement in a single day. Some of the transfers were made to cryptocurrency exchanges Bitstamp, Coinbase, and Kraken, and to market makers Flow Traders and Cumberland DRW.
More on Bitcoin Price Volatility
Daan Crypto echoed these sentiments. He explained that the reduction in the German government’s bitcoin balance is partly due to the price decline and the shrinking pile. He believes that the impact should slowly diminish over time.
A media outlet reported that the German government sent another 700 BTC, valued at $40.47 million, to the ‘139PoP’ address this past weekend. The German government’s continued sales have undoubtedly excited the market, as reflected in bitcoin’s price performance since the flurry of sales began.
When the German government initiated the transfers on June 19, bitcoin was trading around $65,000. It is currently trading at $56,586, a drop of nearly 13%.
By Leonardo Perez
